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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5187 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5187

 To amend the Internal Revenue Code of 1986 to establish a tax credit 
     for Qualified Community College Bonds, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 25, 2024

   Mr. Casey introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
 To amend the Internal Revenue Code of 1986 to establish a tax credit 
     for Qualified Community College Bonds, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community College Infrastructure 
Financing Act''.

SEC. 2. TAX CREDIT FOR QUALIFIED COMMUNITY COLLEGE BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after subpart G 
the following new subpart:

             ``Subpart H--Qualified Community College Bonds

``SEC. 54. QUALIFIED COMMUNITY COLLEGE BONDS.

    ``(a) Qualified Community College Bonds.--For purposes of this 
subchapter, the term `qualified community college bond' means any bond 
issued as part of an issue if--
            ``(1) 95 percent of the available project proceeds of such 
        issue are to be used for a qualified purpose with respect to a 
        qualified community college,
            ``(2) the bond is issued by a State, local, or Indian 
        tribal government in consultation with the jurisdictions of 
        which such college is located, and
            ``(3) the issuer--
                    ``(A) designates such bond for purposes of this 
                section, and
                    ``(B) certifies that it has the written approval of 
                the governing body and the State higher education 
                agency for such bond issuance.
    ``(b) Limitation on Amount of Bonds Designated.--
            ``(1) National limitation.--There is a national community 
        college bond limitation of $1,000,000,000 for each calendar 
        year.
            ``(2) Allocation of limitation.--
                    ``(A) In general.--The national community college 
                bond limitation for a calendar year shall be allocated 
                by the Secretary to any governing body which--
                            ``(i) has submitted an application 
                        described in subparagraph (C), and
                            ``(ii) pursuant to the considerations 
                        described in subparagraphs (C) and (D), the 
                        Secretary (in consultation with the Secretary 
                        of Education) has approved an allocation of 
                        such limitation under this paragraph.
                    ``(B) Cumulative limitation per state.--For 
                purposes of subparagraph (A), the total amount of 
                allocations made to qualified community colleges 
                located with a State for any calendar year shall not 
                exceed an amount equal to 10 percent of the national 
                community college bond limitation for such calendar 
                year.
                    ``(C) Applications.--An application described in 
                this subparagraph shall include such information as the 
                Secretary (in consultation with the Secretary of 
                Education) may require, including the following:
                            ``(i) A description of--
                                    ``(I) the financial sustainability 
                                of the proposal, including how the 
                                governing body will leverage other 
                                sources of funding, and
                                    ``(II) how the qualified purposes 
                                proposed with respect to the qualified 
                                community college will fill an unmet 
                                need within a qualified area.
                            ``(ii) Any relevant approvals with respect 
                        to the proposal that have been granted by any 
                        applicable State, local, or Indian Tribal 
                        government or appropriate accrediting body.
                            ``(iii) A certification that the governing 
                        body--
                                    ``(I) has consulted with the 
                                jurisdictions in which the qualified 
                                community college is, or will be, 
                                located, and
                                    ``(II) has the written approval of 
                                the State higher education agency for 
                                the proposal.
                            ``(iv) In the case of an application 
                        proposing to establish a new qualified 
                        community college, in addition to the 
                        requirements described in clauses (i), (ii), 
                        and (iii)--
                                    ``(I) whether such proposal has 
                                received approval from the State higher 
                                education agency, and
                                    ``(II) a description of the 
                                sustainability of such qualified 
                                community college, including any 
                                commitment from any State, local, or 
                                Indian Tribal government to provide 
                                additional funding for such college.
                    ``(D) Priority for allocations.--For purposes of 
                making allocations under this paragraph, the Secretary 
                (in consultation with the Secretary of Education) 
                shall--
                            ``(i) give highest priority to any proposed 
                        qualified community college which will serve 
                        the residents of--
                                    ``(I) the State's largest 
                                metropolitan statistical area which 
                                does not contain an institution 
                                described in subsection (c)(5)(A), or
                                    ``(II) if subclause (I) does not 
                                apply, the largest micropolitan 
                                statistical area within such State 
                                which does not contain an institution 
                                described in such subsection,
                            ``(ii) after application of clause (i), 
                        give high priority to any governing body 
                        which--
                                    ``(I) has or will have a 
                                partnership with--
                                            ``(aa) 1 or more local high 
                                        schools (as defined in section 
                                        8101 of the Elementary and 
                                        Secondary Education Act of 1965 
                                        (20 U.S.C. 7801)), including a 
                                        dual or concurrent enrollment 
                                        program (as defined in such 
                                        section),
                                            ``(bb) a 4-year institution 
                                        of higher education that 
                                        includes a credit-transfer 
                                        agreement or articulation 
                                        agreement (as defined in 
                                        section 486A(a) of the Higher 
                                        Education Act of 1965 (20 
                                        U.S.C. 1093a(a))) for students 
                                        at the qualified community 
                                        college, or
                                            ``(cc) a State workforce 
                                        development board established 
                                        under section 101 of the 
                                        Workforce Innovation and 
                                        Opportunity Act (29 U.S.C. 
                                        3111), or
                                    ``(II) is the governing body of, or 
                                has or will have a partnership with, an 
                                institution which is--
                                            ``(aa) a part B institution 
                                        (as defined in section 322 of 
                                        the Higher Education Act of 
                                        1965 (20 U.S.C. 1061)),
                                            ``(bb) a Historically Black 
                                        Graduate Professional School 
                                        (as identified in section 
                                        326(e) of such Act (20 U.S.C. 
                                        1063b(e))),
                                            ``(cc) a Hispanic-serving 
                                        institution (as defined in 
                                        section 502(a) of such Act (20 
                                        U.S.C. 1101a(a))),
                                            ``(dd) a Tribal College or 
                                        University (as defined in 
                                        section 316(b) of such Act (20 
                                        U.S.C. 1059c(b))),
                                            ``(ee) an Alaska Native-
                                        serving institution or a Native 
                                        Hawaiian-serving institution 
                                        (as such terms are defined in 
                                        section 317(b) of such Act (20 
                                        U.S.C. 1059d(b))),
                                            ``(ff) a Predominantly 
                                        Black institution (as defined 
                                        in section 371(c) of such Act 
                                        (20 U.S.C. 1067q(c))),
                                            ``(gg) an Asian American 
                                        and Native American Pacific 
                                        Islander-serving institution 
                                        (as defined in section 371(c) 
                                        of such Act (20 U.S.C. 
                                        1067q(c))), or
                                            ``(hh) a Native American-
                                        serving nontribal institution 
                                        (as defined in section 371(c) 
                                        of such Act (20 U.S.C. 
                                        1067q(c))), and
                            ``(iii) after application of clauses (i) 
                        and (ii), give priority to any governing body 
                        which, in carrying out a new construction or 
                        renovation project using any available project 
                        proceeds from the issuance of any qualified 
                        community college bond, plans to use not less 
                        than 80 percent of such proceeds for 
                        construction or renovation that is certified, 
                        verified, or consistent with the applicable 
                        provisions of--
                                    ``(I) the Leadership in Energy and 
                                Environmental Design green building 
                                rating standard of the United States 
                                Green Building Council,
                                    ``(II) the Living Building 
                                Challenge green building certification 
                                program developed by the International 
                                Living Future Institute,
                                    ``(III) a green building rating 
                                program developed by the Collaborative 
                                for High-Performance Schools that is 
                                designated as CHPS Verified, or
                                    ``(IV) a green building program 
                                that--
                                            ``(aa) has standards that 
                                        are equivalent to or more 
                                        stringent than the standards of 
                                        a program described in 
                                        subclause (I), (II), or (III),
                                            ``(bb) is adopted by the 
                                        State or another jurisdiction 
                                        with authority over the 
                                        qualified community college, 
                                        and
                                            ``(cc) includes a 
                                        verifiable method to 
                                        demonstrate compliance with the 
                                        program.
            ``(3) Designation subject to limitation amount.--The 
        maximum aggregate face amount of bonds issued during any 
        calendar year which may be designated under subsection (a) with 
        respect to any qualified community college shall not exceed the 
        limitation amount allocated to the governing body of such 
        college under paragraph (2) for such calendar year.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Governing body.--The term `governing body' means--
                    ``(A) the board of trustees or other governing 
                organization of a qualified community college, or
                    ``(B) a State, local, or Indian Tribal government 
                (or any political subdivision thereof), or any 
                combination of local educational agencies or 
                municipalities, that participates or proposes to 
                participate in the establishment and operation of a 
                qualified community college.
            ``(2) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            ``(3) Local educational agency.--The term `local 
        educational agency' has the meaning given the term in section 
        8101 of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7801), except such term shall include any elementary 
        school or secondary school funded by the Bureau of Indian 
        Education, notwithstanding section 8101(30)(C) of such Act.
            ``(4) Qualified area.--The term `qualified area' means any 
        of the following:
                    ``(A) A city, metropolitan statistical area, or 
                county that does not contain any institution described 
                in paragraph (5)(A).
                    ``(B) A low-income community (as defined in section 
                45D(e)).
            ``(5) Qualified community college.--The term `qualified 
        community college' means a public institution of higher 
        education--
                    ``(A) at which the highest degree that is 
                predominantly awarded to students is an associate 
                degree (including 2-year tribally controlled colleges 
                under section 316 of the Higher Education Act of 1965 
                (20 U.S.C. 1059c) and public 2-year institutions of 
                higher education),
                    ``(B) that is established by and operated under the 
                supervision of a governing body in conjunction with the 
                State, local, and Indian tribal governments whose 
                residents will be served by such institution, and
                    ``(C) that is located within a qualified area.
            ``(6) Qualified purpose.--The term `qualified purpose' 
        means--
                    ``(A) establishing and operating a qualified 
                community college,
                    ``(B) expanding an existing qualified community 
                college to a qualified area,
                    ``(C) constructing, rehabilitating, repairing, 
                upgrading, enhancing, or expanding any facility owned 
                or to be used by a qualified community college to carry 
                out the educational purposes (including instructional 
                and research purposes) of such college,
                    ``(D) providing equipment for use by students at a 
                qualified community college,
                    ``(E) investing in online resources or broadband 
                access projects to deliver community college services 
                to qualified areas, or developing course materials for 
                education to be provided by a qualified community 
                college, provided that such uses do not collectively 
                account for more than 10 percent of the amount 
                allocated under subsection (b)(2) to the governing body 
                for such college,
                    ``(F) training professors and other school 
                personnel at a qualified community college, provided 
                that such use does not account for more than 5 percent 
                of the amount allocated under subsection (b)(2) to the 
                governing body for such college,
                    ``(G) constructing, rehabilitating, repairing, 
                upgrading, enhancing, or expanding any on-campus 
                facility to be used by a qualified community college 
                to--
                            ``(i) provide childcare to students and 
                        staff, provided that such use does not account 
                        for more than 10 percent of the amount 
                        allocated under subsection (b)(2) to the 
                        governing body for such college, or
                            ``(ii) provide affordable housing, with a 
                        priority given to students and staff, and
                    ``(H) connecting students with transportation to a 
                qualified community college, including partnering with 
                public transit providers to--
                            ``(i) add bus, rail, or paratransit stops 
                        at or within walking distances of the campus,
                            ``(ii) add bus, rail, or paratransit routes 
                        to allow for transportation between the campus 
                        and surrounding areas and other cities,
                            ``(iii) increase the frequency of service 
                        or adjust the schedules for bus, rail, or 
                        paratransit routes to allow students to get to 
                        and from their classes, and
                            ``(iv) subsidize bus, rail, or paratransit 
                        costs for students.
            ``(7) State.--The term `State' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, 
        Guam, American Samoa, and the Commonwealth of the Northern 
        Mariana Islands.
            ``(8) State higher education agency.--The term `State 
        higher education agency' means the officer or agency primarily 
        responsible for the State supervision of higher education.
    ``(d) Application of Certain Labor Standards to Projects Financed 
With Qualified Community Bonds.--
            ``(1) In general.--Each laborer and mechanic employed by a 
        contractor or subcontractor in the performance of construction, 
        alteration, or repair work financed in whole, or in part, with 
        the proceeds of any qualified community college bond issued 
        after the date of enactment of the Community College 
        Infrastructure Financing Act shall be paid wages at rates not 
        less than those prevailing on work of a similar character in 
        the locality, as determined by the Secretary of Labor in 
        accordance with subchapter IV of chapter 31 of title 40, United 
        States Code.
            ``(2) Authority.--The Secretary of Labor shall have, with 
        respect to the labor standards described in paragraph (1), the 
        authority and functions set forth in Reorganization Plan 
        Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 
        3145 of title 40, United States Code.''.
    (b) Conforming Amendment.--The table of subparts for part IV of 
subchapter A of chapter 1 of the Internal Revenue Code of 1986 is 
amended by inserting after the item relating to subpart G the 
following:

           ``subpart h--qualified community college bonds''.

SEC. 3. CREDIT TO HOLDERS AND ISSUERS OF QUALIFIED COMMUNITY COLLEGE 
              BONDS.

    (a) Allowance of Credit.--
            (1) In general.--Section 54A of the Internal Revenue Code 
        of 1986, as in effect on the day before repeal by Public Law 
        115-97, is revived.
            (2) Credit limited to qualified community college bonds.--
        Section 54A(d) of such Code is amended--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) Qualified tax credit bond.--The term `qualified tax 
        credit bond' means a qualified community college bond which is 
        part of an issue that meets requirements of paragraphs (2), 
        (3), (4), (5), and (6).'', and
                    (B) in paragraph (2), by striking subparagraph (C) 
                and inserting the following:
                    ``(C) Qualified purpose.--For purposes of this 
                paragraph, the term `qualified purpose' means a purpose 
                specified in section 54(c)(3).''.
    (b) Credit Allowed to Issuer.--
            (1) In general.--Section 6431 of the Internal Revenue Code 
        of 1986, as in effect on the day before repeal by Public Law 
        115-97, is revived.
            (2) Conforming amendments.--
                    (A) Section 6431(f) of such Code, as revived by 
                paragraph (1), is amended by striking paragraphs (2) 
                and (3) and inserting the following:
            ``(2) Specified tax credit bond.--For purposes of this 
        subsection, the term `specified tax credit bond' means any 
        qualified tax credit bond (as defined in section 54A(d)(1)) if 
        the issuer of such bond makes an irrevocable election to have 
        this subsection apply.''.
                    (B) Subparagraph (A) of section 6211(b)(4) of the 
                Internal Revenue Code of 1986 is amended by striking 
                ``and 6428A'' and inserting ``6428A, and 6431''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall apply to obligations issued 
after the date of the enactment of this Act.
                                 <all>
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